It Costs $10 to Make a Single Unit Using Regular

question 60

Multiple Choice

It costs $10 to make a single unit using regular production and $15 to make a single unit using overtime production. Finished units sell for $17 and are built to order. The manufacturing plant has a regular production capacity of 250 units per month and no inventory at the start of the planning period. What is the BEST net cash flow for the entire planning period if the manufacturer uses a chase plan? $$\begin{array} { | l | c | } \hline{ \text { Month } } & \text { Forecast } \\\hline \text { Tanuary } & 250 \\\hline \text { February } & 200 \\\hline \text { March } & 300 \\\hline \text { April } & 400 \\\hline\end{array}$$

• A)$6,800
• B)$7,050
• C)$7,300
• D)$7,550